A contract between the mineral owner or the lessor on the one hand and a company or the lessee on the other hand. Under the terms of the contract, the lessor grants the lessee the right to explore, drill and then produce oil and/or gas in a specific area for a specified initial term which is then extended as long as hydrocarbons are being produced commercially. The oil and gas lease is granted by the lessor in exchange for the lessee paying royalty payment to the lessor
To carry out offshore drilling an artificial drilling platform must be constructed. This artificial platform can take many forms, depending on the characteristics of the well to be drilled, including how far underwater the drilling target is. There are two basic types of offshore drilling rigs: those that can be moved from place to place, allowing for drilling in multiple locations, and those rigs that are permanently placed. Moveable rigs are often used for exploratory purposes because they are much cheaper to use than permanent platforms. Once large deposits of hydrocarbons have been found, a permanent platform is built to allow their extraction.
The total volume of oil estimated to be in place in an oil reservoir prior to commencement of production
A level in a reservoir above which there is oil/gas and below which there is water
An offtake agreement for natural gas is a long term sales agreement of the project products with one or more off-takers which usually includes long term sales, a fixed or agreed price, and a take-or-pay
The oil recovery factor (expected ultimate recovery divided by original oil-in-place) indicates what percent of the total resource can be recovered. Ultimately, the actual percentage recovered is significantly driven by complex economic and technological considerations. Recoverable resources include cumulative production, proved reserves, undiscovered reserves, and reserves growth in discovered fields.
Largest oil refinery in Israel, situated in Haifa. The Company has a maximum crude oil refining capacity of approximately 24,800 tons per day (180,000 barrels per day). Over 75% of the Company’s produce goes to local consumption, while the balance is exported, primarily to the Mediterranean basin.
Until 2006 the Oil Refineries (ORL) was a monopoly in the refining of crude oil and the manufacturing of fuel products, and was owned by the state (74%) and Israel corp (26%). In September 2006, the government purchased Israel corp’s share in order to split up and privatize the company. The Ashdod refinery was sold to Paz for 3.25 billion shekels and became the Ashdod Oil Refinery (Baza).
The Haifa refinery was privatized in two stages: first, 44% of the shares were sold to institutional investors and 46% were sold to the Ofer-Federman group; second, Haifa Oil Refinery (Bazan) shares were issued on the TASE. The sale reflected a market cap of 6.25 billion shekels.
During 2007 Israel Corp acquired the controlling interest in ORL for $706 million.
Amount of oil or gas in a reserve that can be produced
